“They are obviously going to get into the housing market,” Kelly Wolfe, co-founder and president of Integrity Mortgage Group, told MPA when asked about millennial engagement. “They aren’t going to rent forever, and that will change the complexity of the industry as it goes forward.”
According to recent data from Fannie Mae, the serious delinquency rate on mortgages for single-family homes fell to its lowest level in June of this year since the market collapse in 2008.
The single-family serious delinquency rate fell to 1.66 per cent in June from 1.70 per cent in May, according to Fannie Mae. June’s number is the lowest serious delinquency rate since August of 2008.
With delinquencies down, the mortgage industry is turning its attention to the burgeoning millennial market, which consists of people in their mid-20s to early 30s, who now are seeing purchasing a home as a viable option to just renting.
And that has meant changing the marketing approach to reach the millennial segment, says Wolfe, who like many in the industry has shifted his company to reach out to clients online and through mobile devices.
“We’re ‘paperless’ and a lot of our stuff is done in the system, and I think we’re up on the curve on technology as anyone,” he says. “We’re looking at handling documents and signoffs that can be done on your phone. We use e-signature and Encompass now.”
Mortgage loan delinquency rates are at a seven-year industry low, and an uptick in millennial homebuying is giving the industry a reason to smile.